Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of $3.65 billion, a 44% increase year-over-year, exceeding guidance [10] - Adjusted EPS for the quarter was $1.89, a 70% increase compared to the previous year [10] - Full-year revenue for 2025 was $12.4 billion, representing a 28% growth year-over-year, while adjusted EPS was $6.05, up 56% [7][8] - Adjusted operating margin for Q4 was 7.7%, marking the strongest performance in company history [7] Business Line Data and Key Metrics Changes - Revenue in the ATS segment for Q4 was $795 million, a 1% decline year-over-year, while the CCS segment revenue was $2.86 billion, up 64% [11][12] - The CCS segment accounted for 78% of total company revenue in Q4, with communications end market revenue increasing by 79% [12] - The ATS segment margin improved to 5.3%, while the CCS segment margin was 8.4% [13] Market Data and Key Metrics Changes - The company anticipates revenue growth in the communications end market to be in the low sixties percentage range, driven by ongoing ramps in 800G programs [23] - The enterprise end market is expected to see very strong growth in the high teens percentage range, supported by AI/ML compute program ramps [23] Company Strategy and Development Direction - The company is significantly increasing capital investment plans for 2026 and 2027 to support long-term capacity planning and growth opportunities [16][17] - Investments will focus on expanding manufacturing capabilities in the U.S. and Thailand, aligning with customer demand for data center infrastructure and AI capabilities [18][19] - The company aims to maintain a strong balance sheet while funding increased capital expenditures through operating cash flow [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, raising revenue guidance to $17 billion and adjusted EPS to $8.75, reflecting a 37% and 45% growth year-over-year, respectively [25] - The company is focused on securing supply and managing macro uncertainties while anticipating strong demand from hyperscalers and digital native customers [37][41] - Management highlighted the unprecedented level of demand and the strategic importance of investments in new capacity to support future growth [30][31] Other Important Information - The company generated $156 million in free cash flow in Q4, with total annual adjusted free cash flow of $458 million for 2025 [15] - The company has a healthy cash balance of $596 million and a net debt position of $128 million, indicating strong liquidity [20] Q&A Session Summary Question: Concerns about potential slowdown in fiscal second half - Management reassured that customer forecasts for 2026 are higher than the guidance, indicating a pragmatic approach to outlook [36][37] Question: Risk management regarding funding for AI-related projects - Management stated that the build-out is based on booked business with minimal risk of programs not materializing, emphasizing strong demand [40][41] Question: CapEx investment and its impact on revenue - Management clarified that current CapEx investments are tied to booked business and will support revenue growth in 2027 and beyond [49] Question: Updates on digital native customer relationship - Management confirmed a solid relationship with the digital native customer, with preparations for ramping production in early 2027 [88] Question: Expected returns on new programs compared to existing ones - Management indicated that new programs are becoming more complex, with a focus on strong profitability and disciplined investment [95][96]